Record PSU Stake Sale what's the Centre's Real Plan?

The Central Government has accelerated the disinvestment of Public Sector Undertakings (PSUs) to strengthen its finances amid rising expenditure and slower revenue growth. During the first quarter of the current financial year (April–June), the government mobilised ₹24,923 crore through PSU stake sales, the highest first-quarter disinvestment collection in the last three financial years.

Out of this amount, ₹18,561 crore was raised through Offer for Sale (OFS) transactions in six PSUs over the past six weeks, while Infrastructure Investment Trusts (InvITs) contributed another ₹6,367 crore. Encouraged by strong investor participation despite market volatility, the government is preparing additional stake sales in LIC, IDBI Bank, and several other PSUs.

The Centre expects to exceed its ₹80,000 crore disinvestment target for the current financial year. The move comes as higher crude oil prices, rising subsidy bills, and slower tax revenue growth are putting pressure on government finances. Officials believe faster disinvestment will help contain the fiscal deficit and improve revenue generation.